Cash management 2013 Practice paper 2 question 1.4

Deaniedani

I need help on the cash management level 4 AAT practice paper 2 question 1.4 investment income, the answer is £3575 for period 7. But I don’t know how to work it out to get that answer. Can someone please help?

Smiller94

Deaniedani said:

I need help on the cash management level 4 AAT practice paper 2 question 1.4 investment income, the answer is £3575 for period 7. But I don’t know how to work it out to get that answer. Can someone please help?

Hey!

I totally agree, i am stuggling with this figure also!
Probably a long shot as it was SO long ago but I dont suppose you could help explain this to me?

Thank you in advance for any help you can give.

petitechocoholic

Hi all
For the investment income you have to add on the percentage figures - 2.8% + 0.5% = 3.3%
Times this by the amount so 0.033 x 1300000 = 42900 - this is the yearly interest so monthly = 42900/12=3575

Can anyone help me get the mortgage payment of £42,000?

Smiller94

Hi,

I can help with that.

To work out the £42,000 mortgage payment figure you need to:
4,000,000 x 90% = 3,600,000 / 120 months (10 years) = 30,000/month (CAPITAL)
3,600,000 X 4% = 144,000/12 months = 12,000 (INTEREST)

Then add these together :-)

petitechocoholic said:

Hi all
For the investment income you have to add on the percentage figures - 2.8% + 0.5% = 3.3%
Times this by the amount so 0.033 x 1300000 = 42900 - this is the yearly interest so monthly = 42900/12=3575

Can anyone help me get the mortgage payment of £42,000?